Karnataka Floats Tender For 250 MW Solar With 1100 MWh BESS Project At Pavagada

Karnataka Renewable Energy Development Limited (KREDL) has issued a Request for Selection (RfS) dated 15th May 2025 to select solar power developers for setting up a 250 MW Solar PV Power Project along with a 250 MW / 1100 MWh Battery Energy Storage System (BESS) at Ryapte, located in Pavagada Solar Park, Tumkur district, Karnataka. This initiative aims to supply peak power and improve grid utilization through a tariff-based competitive bidding process.

KREDL will lease 1,000 acres of land at Annadanapura and Reddivarahalli villages in Pavagada for the project at a base rate of ₹30,000 per acre annually, with a 5% escalation every two years. The successful bidder will also have to pay a Local Area Development Charge of ₹5 lakhs per MW, distributed in five equal annual installments post-commercial operation.

The project must be executed on a Build-Own-Operate (BOO) basis and the generated power will be procured by Karnataka’s Electricity Supply Companies (ESCOMs) under a 25-year Power Purchase Agreement (PPA). The project must be commissioned and begin supplying power within 24 months of the PPA’s effective date. A maximum extension of six months is allowed with applicable penalties, beyond which daily encashment of the Performance Bank Guarantee (PBG) will occur.

The RfS follows a single-stage, two-envelope e-bidding system via the ISN-ETS portal. The cost of the RfS document is ₹41,300 (including GST), and a non-refundable bid processing fee of ₹25 lakhs plus 18% GST must be paid along with the bid.

An Earnest Money Deposit (EMD) is mandatory, calculated using the formula: EMD = ₹9,54,000 per MW of Solar + ₹3,34,000 per MWh of BESS. For this 250 MW solar and 1100 MWh BESS project, the total EMD required is ₹59,35,00,000 (₹59.35 crore). Similarly, the Performance Bank Guarantee (PBG) must be submitted before signing the PPA using the formula: PBG = ₹23,85,000 per MW of Solar + ₹8,35,000 per MWh of BESS. This results in a total PBG requirement of ₹1,48,42,50,000 (₹148.42 crore).

The energy supply will be closely monitored. The developer must ensure at least 80% of the annual solar generation is stored in the BESS. Any shortfall in daily dispatchable energy from BESS will attract a penalty of ₹10/kWh or the highest discovered rate on power exchanges, whichever is higher.

Only one bid per entity is allowed for the full 250 MW capacity. ESCOMs reserve the right to verify the capacity and commence offtake only after the submission of all commissioning and connectivity documents.

This project supports Karnataka’s renewable energy goals and is aligned with the Ministry of Power’s guidelines issued on 9th June 2023 for firm and dispatchable power from renewable sources integrated with energy storage.